Business Plan

Company information

Name of company: Michie’s catering

Address of company: 356 Fifth Avenue, New York

Telephone number of the company: +1-212-290-4700

Fax: +1-212-736-1300

Corporate officers:

a) Joseph Brown

Financial advisor

Telephone number: +1-300-567-2300

Address: 200 Lexington Avenue

b) Helen Martins

General Manager

Telephone number: +1- 985-654-5400

Address: 345 Madison Avenue

c) Jennifer Clay

Human Resource Manager

Telephone number: +1-298- 129-2700

Address: 78 Park Avenue

This business plan was created on 27 October 2012

Michelle Stevens prepared it

This is the third copy of the proposed business plan

Executive Summary

The company

Michie’s Catering is a catering company that targets children’s occasions primarily. It is located in the vibrant city of New York. The proprietor of the business is Michelle Stevens. This catering company is unique since it will only cater for events for children and all the employees will have some education on how to treat the children well.

Market opportunity

Michie’s catering was created to take advantage of the gap that was present in the catering business. Several catering Companies exist in New York but they are not focused on the needs of the children. These companies created children’s events as they did for adults. For this reason, the children did not enjoy themselves. This catering company seeks to bridge this gap and provide children with events that they will enjoy and that will appeal to them exclusively.

Capital requirements

The establishment of the company will require a loan of $ 30, 000. This amount will cater for the hiring of a well equipped kitchen as well as the purchase of the items required for the company. Repayment will begin three months after the inception of the business. It will entail a remission of a certain amount that will be agreed upon at the end of each month (OSBDC, 2005).

Management

The company will have only three members of management for the time being. The financial officer, Mr. Brown will be an invaluable asset mainly because of his several years of experience in the field of finance and his expertise. Ms. Martins will be the general manager who will oversee the running of the business. Her experience and determination will be extremely important for the success of the business. The human resource manager will be Mrs. Clay. She will be valuable to the company because of her proficiency in managing employees.

Competitive advantage

This company will be successful since it is the only one of its kind in New York. The status of its being a monopoly will ensure that it will be a profitable venture (McKeever, 2008).

Financial Projections

The company will make an average of $120,000 every year

III. Organizational Plan

a) Summary of the nature of the business

The company was formed out of the need to offer children with memorable occasions like birthday parties. This is because; the existing catering companies often planned children’s parties as if they were those of adults. This made them unmemorable for the children. For this reason, the idea of a catering company that will work only to ensure that the children have fun during these special occasions was born. The company will be fully focused on the needs and requirements of the children while planning for the occasions in question. This feature makes Michie’s catering the first company to take on such an approach. For this reason, it is a exceptional company. The company in the short term intends to serve all of New York while for the long-term; it will expand into other regions in the country. The strategy of the company is simple; to make every event memorable for the child. It will achieve this by including the children in question in the planning of the event. In addition to this, only the best employees will be employed in the company in order to ensure that the services rendered are of the highest standards and are not substandard.

b) Services and Products offered

Services like event planning will be offered to our customers. The planning will be done by an experienced event planner and they will follow all instructions given by the customer. They will also provide advice that pertains to the specific event to be planned. In addition to this, due to the extensive connections the company has created with several hotels and parks around the city, finding a location for the event in question will not pose a big problem provided the booking is done in advance.

For the catering wing, it will provide a variety of foods that would suit any events. The members of staff are well trained, having graduated from prominent culinary schools. They are able to prepare several foreign cuisines. The menu will be subject to the preferences of the customers. Customers may also request for special meals for their occasions. The meals will be prepared with only the highest quality produce. All meals will be prepared under high hygiene levels as stipulated by the city laws.

c) Administrative plan
Location

The Company will be located in New York, 356, Fifth Avenue. The company will have a main office accompanied with a hired kitchen with all the equipment needed by the company. Associated cost of the location will be about $12,000. The materials required like foodstuff will differ in accordance to the needs of the client in question (Finch, 2010).

Legal Structure

Michie’s Catering is a sole proprietor ship business since it is a business belonging to only one person. Such structure is beneficial for the company since it does not require several legal documents for its inception. If it also rather simple to operate. When it comes to decision making, it is also advantageous since the proprietor makes all the decisions on behalf of the company. Chances of disagreements occurring in the business are minimized in the case of a sole proprietorship company Robertson & Chong, 2008).

Management of the company

The management of the company will be based on three people other than the business owner, Michelle.

Financial Advisor is Mr., Brown. He will be responsible for the financial arm of the company. He will control the amount of money used in the company as well as keep the accounting records for the company. He will be expected to create a budget that will estimate the amount of money to be used during the period in question. The budget will be important since it will ensure that we will not make any losses given that wastage of money will be minimal. He will earn a projected $5,000.
Human resource manager is Mrs. Clay. She will be responsible for the employees’ welfare. All the employees will report to her. In the case of any problem, she is also the person who should sort it out. She will also be in charge of the salaries of the employees in the company. Her projected salary will be $4500.
General Manager is Ms. Martins. Her responsibility will be to oversee the day-to-day operations of the company. She should be able to ensure that all the events are planned effectively and in time. She will also address any complaints from the customers. She will earn $4500.

Personnel

The company will have an estimated 30 employees. They will be spread out in the different departments of the company. The finance department will have an additional three employees to help the financial advisor. The catering department will have fifteen employees. They will include chefs specialized in different aspects. The planning department will have ten employees. The remaining two employees will work in the company office. All the employees are expected to have a minimum qualification of a diploma from high school. For the chefs, a certificate from a culinary school is required. Planners also have to have a certificate from an events management institution. The employees will work for about eight pours every day. They will be paid based on their qualifications and expertise. However, the salary will range between $ 3, 000- $ 4, 000. The number of employees will be increased if there is an increase in the demand in the market.

Accounting details
a) The company will use the Generally Accepted Accounting Principles (GAAP) rather than the International Financial Reporting Standards (IFRS). This is because the business will be serving a domestic market. For this reason, the GAAP is more suitable than the IFRS. IFRS is more appropriate for international companies since it has aspects that can be used in several countries in the world over. The use of the GAAP system will suit the company since the financial advisor is compliant with it and it is best for local businesses that do deal with other countries. The company’s financial advisor, Mr. Brown, will make any changes in the accounting records if need be (McEwen, 2009).
b) Financial records of the company

Start-up Requirements

Start-up Expenses

Dept. of Health Fees $74

Brochures $605

Consultants $2,000

Lease (kitchen) $11,076

Expensed Equipment $100

Software $645

Total Start-up Expenses $14,500

Start-up Assets

Cash needed $15,500

Start-up supply $0 Current Assets $0

Long-term Assets $0

Total Assets $15,500

Total Requirements $30,000

Start-up Funding

Start-up Expenses $14,500

Start-up Assets $15,500

Total funding necessary $30,000

Assets

Non-cash Assets (Start-up) $0

Cash Requirements (Start-up) $15,500

Cash Balance on Starting Date $15,500

Total Assets $15,500

Liabilities and Capital

Liabilities

Current Borrowing $0

Long-term Liabilities $0

Accounts Payable $0 Current Liabilities $0

Total Liabilities $0

Capital

Planned Investment

Grantor $30,000 Additional Investment $0

Total Planned Investment $30,000

Loss (Start-up) $14,500

Total Capital $15,500

Total Capital and Liabilities $15,500

Total Funding $30,000

The creation of these financial statements has included the assumption of a grantor having provided the required $30,000 to start the business. In order to ensure that the assets of the business are well protected, I will set up measures. First, in the case of the kitchen where most of the important equipment is, the employees who work there will each be responsible for a particular appliance. This will ensure that each of them is kept safe since there is always a person taking care of it. The other measure will be the creation of keycards in the company. They will enable any of the employees to access any of the company’s equipment like computers for instance. The inception of this measure will ensure that accountability is created in the company. Subsequently, the assets will be kept safe. If any challenges may arise in the implementation of these measures, there will be a meeting held in order to explain the reasons why the measures are to be implemented in the company. In case of any grievances, the employees may also air them during this period. It may take a while for the employees to get accustomed to the new measures and this may pose a challenge to the management of the company.

The regulatory environment particularly the Sarbanes-Oxley Act will have an impact on the business. This act seeks to protect investors from fraudulent business people. In order to comply with this law, the company will have an independent audit performed each year and the results will be given to the investors. This will make sure that they are aware of the business activities. Such a law will also affect the decision making process significantly. This is because, before any decision is made, management had to consider the implications it will have on the company and if it contradicts the law.

This business venture is extremely viable since it will bridge an existing gap in the supply chain. It will also be successful since there is adequate planning that has been put in place to ensure that it succeeds. There is also an assurance of adequate profits if the business is establishes. Investing in such a business idea is recommended.

References

Finch, B. (2010). How to write a business plan. London: Kogan Page.

McEwen, R. A. (2009). Transparency in financial reporting: A concise comparison of IFRS and US GAAP. Peters field, Hampshire, Great Britain: Harriman House.

McKeever, M. P. (2008). How to write a business plan. Berkeley, Calif: Nolo

Oklahoma Small Business Development Center (OSBDC), (2005). The business plan. Durant, Okla.: Oklahoma Small Business Development Center.

Robertson, I., & Chong, D. (2008). The art business. London: Routledge